PSBs earned Rs 34,774 crore in the first quarter of 2023, more than doubling their profit. High interest rates gave banks a healthy net interest margin (NIM) during the quarter. 100
Public sector banks (PSBs) earned Rs 34,774 crore in the first quarter of 2023, more than doubling their profit. According to quarterly public sector lender figures, all 12 state-owned banks made Rs 15,306 crore in the April-June period of the previous fiscal.
High interest rates gave banks a healthy net interest margin (NIM) during the quarter. Most banks have NIM exceeding 3%. Bank of Maharashtra in Pune took the lead by having the highest NIM at 3.86 percent, followed by Central Bank and Indian Bank.
Four lenders had first-quarter profits exceeding 100%. Punjab National Bank’s 307% profit rise was the greatest.
It was followed by State Bank of India (SBI) at Rs 16,884 crore and Bank of India at Rs 1,551 crore.
SBI’s biggest quarterly profit of Rs 16,884 crore represents 50% of PSB profits. When these banks made Rs 1.05 lakh crore in FY23, SBI contributed roughly 50%.
Five PSBs increased 50–100%. The Bank of Maharashtra topped with Rs 882 crore in net profit, up 95%. Then Bank of Baroda grew 88 percent to Rs 4,070 crore and UCO Bank 81 percent to Rs 581 crore.
Punjab & Sind Bank in Delhi reported a 25% dip in net profit at Rs 153 crore in June 2023. Government actions have revived PSBs. 4R’s identification, resolution, recapitalization, and reforms have reduced bank non-performing assets to 3.9 percent of total loans, a 10-year low. In the previous eight years, banks recovered Rs 8.6 lakh crore in bad loans.
From 2016-17 to 2020-21, the government recapitalized PSBs with Rs 3,10,997 crore. The recapitalisation initiative helped PSBs avoid default.
The government’s eight-year reforms enhanced governance, credit discipline, and responsible lending. Technology adoption, bank mergers, and banker confidence also contributed.
Conclusion:-
Public sector banks (PSBs) earned Rs 34,774 crore in Q1 2023, more than doubling their profit. All 12 state-owned banks made Rs 15,306 crore in the previous fiscal. High interest rates provided healthy net interest margins, with the Bank of Maharashtra having the highest NIM at 3.86 percent. Punjab National Bank’s 307% profit rise was the greatest, followed by State Bank of India (SBI) at Rs 16,884 crore and Bank of India at Rs 1,551 crore. Government actions have revived PSBs, with 4R’s identification, resolution, recapitalization, and reforms reducing bank non-performing assets to 3.9% of total loans. The government’s eight-year reforms enhanced governance, credit discipline, responsible lending, technology adoption, bank mergers, and banker confidence.
